UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF FLORID A FORT LAUDERDALE DIVISIO N SECURITIES AND EXCHANGE COMMISSION Plaintiff , V . MICHAEL LAUER , LANCER MANAGEMENT GROUP, LLC, and LANCER MANAGEMENT GROUP II, LLC, Case No . 03-80612 CIV-MARRA Defendants , Jointly Administere d an d LANCER OFFSHORE, INC ., LANCER PARTNERS, LP, OMNIFUND, LTD . , LSPV, INC ., and LSPV, LLC , Relief Defendants . / IN RE : Chapter 11 Cas e LANCER PARTNERS, L .P ., Case No . : 04-80211 -CIV-MARR A DEBTOR . SEVENTH INTERIM APPLICATION FOR COMPENSATION OF FEES AND COSTS OF ACCOUNTANT FOR RECEIVER (Request for Relief in Bankruptcy Case Only ) Berkowitz Dick Pollack & Brant, Certified Public Accountants and Consultants, LLP ("BDPB"), accountant to the Receiver - Lancer Partners, Limited Partnership, ("Debtor"), applies for interim compensation for fees for services rendered and costs incurred in this Chapter 11 proceeding . This application is filed pursuant to 11 U .S .C . § 330 and Bankruptcy Rule 2016 , and meets all of the requirements set fo rt h in the Guidelines incorporated in Local Rule 2016-1 ( B)(1) . The exhibits a tt ached to this application , pursuan t to the Guidelines, are :
Case No . : 04-80211-C I V-MAR R A Exhibits "1-A" and "1-B" - Summary of Professional and Paraprofessional Time . Exhibit "2" - Summary of Requested Reimbursement of Expenses . DESCRIPTION OF SERVICE S The following represents a summary of the fees performed by BDPB in connection with this case . 1 Accounting / Auditing 125 .50 hours $ 29,132 .0 0 Description - Preparation of detailed cash reconciliation for Lancer Partners, LP and Lancer Management Group II to identify flow of investor funds , securities activity and income and expenses . Prepare analysis in conjunction with Creditor Committee discussions . Tracing payments to and from the Portfolio Companies' books and records . 15 .60 hours $ 4,603 .5 0 2 Case Administration Description - Engagement management , preparation of project management and staffing schedules , engagement team status meetings , preparation of planning documents and status repo rt s , a tt endance at cou rt proceedings , meetings and coordination of open issues with counsel , conference calls, and discussion of case ma tt ers . Evaluation of technology needs in connection with development and analysis of data . 3 Claims Administration / Objections 16 .40 hours $ 4,195 .5 0 Description - Review and analysis of proofs of claim and supporting documentation submitted to the Receiver . Creation of claims database to administer claims . Comparison of claims to Lancer Partners' records to assist counsel to assess the validity of submitted claims . 2
Case No . : 04-80211 -C IV-MAR RA 4 Data Analysis 284 .70 hours $ 55,548 .0 0 Description - Tasks in this category involved time on the following projects : • Analysis of books and records for Lancer Partners . • Creation and updating of a database of transactions entered into by Lancer Partners . • Review and analysis of operational activity of portfolio companies . • Analysis of payments and outflows of cash from Lancer Pa rt ners to insiders, portfolio companies and third parties . • Compilation of investor information analyzing Pa rt ner contributions and distributions . • Analysis of net redeemers , pa rt ial redeemers and non - redeemer s • Detailed analysis of trading activity for specific portfolio companies invested in by Lancer Partners . • Analysis and review of private transactions entered into by Lancer Pa rt ners . • Analysis of Inter-fund trading activity between various Lancer hedge funds . 5 Evidentia ry Analysis 6 .50 hours $ 2,137 .5 0 Description - Assist Receiver to prepare additional document requests and subpoenas . 6 Fee / Employment Application s 56 .70 hours $ 12,568 .0 0 Description - Preparation of Fee Applications . 7 Fraudulent Transfers Litigation 88 .00 hours $ 14,752 .0 0 Description - Preparation of schedules for meetings with Creditors Commi tt ee ; preparation and analysis of contribution and redemption repo rt s and preparation of exhibits for fraudulent transfer complaints . 8 GGK Litigation 26 .90 hours $ 5,579 .5 0 Description - Assist Receiver in preparation of complaint . Review of GGK audit workpapers for year end December 31, 1997, 1998 and 1999 . 9 Investor / Creditor Communications 25 .30 hours $ 4,947 .0 0 Description - Correspondence , preparation for and meetings with Creditor Commi tt ee regarding cash reconciliations 3
Case No . : 04-8021 1 -C IV-MAR R A 10 Pa rt nership Tax Returns 310 .10 hours $ 68,701 .0 0 Description - Analysis of allocations of gains and losses to Partners for tax repo rt ing purposes . Preparation and review of 2002 pa rt nership return Form 1065 . Preparation of K-1 forms to be issued to 109 pa rt ners . Review of GGK work papers related to the allocation of realized investment gains to individual pa rt ners . Drafting of disclosure statements to be issued to Internal Revenue Se rv ice and to Search of individual pa rt ners . Address impact of prior year Wash Sales . concordance and Lancer computer files for schedules supporting 2001 partner allocations . 22 .50 hours $ 3,275 .5 0 11 Post - petition Accounting Description - Preparation and review of monthly Debtor - In-Posession Repo rt s for the months December 2004, January 2005 and February 2005 . 12 Tax Issues 40 .50 hours $ 10,646 .0 0 - Analysis of filing requirements for affiliated entities . Review Description . Preparation of memorandum regarding penalties and interest for late filings document requests . Review and respond to various State tax notices . Meetings and conference calls with Receiver ' s counsel related to tax issues . 1,018 . 70 hours $ 216,085 .5 0 4
Case No . : 04-8021 1-CIV-MARR A COMPENSATION The applicant believes that the requested fee, of $216 , 085 .50 for 1,018 .70 hour s worked , is reasonable considering the twelve factors enumerated in Johnson v . Georgia Highway Express, Inc ., 488 F .2d 714 (5th Circuit 1974), made applicable to bankruptcy proceedings by In re First Colonial Corp . of America, 544 F . 2d 1291 (5th Cir . 1977), as follows : 1 . The General Nature of the Services Rendered : the Amounts Involved and the Results Obtained . This case was commenced on with the filing of Volunta ry Bankruptcy Petitions for the Debtor on April 16 , 2003 . Ce rt ain matters and the results obtained with respect to those ma tt ers are as follows : 2 . Time and Labor Required . The time records transcribed as Exhibits "1 - 4" hereto show that BDPB has devoted not less than 1 , 018 .70 hours of actual recorded time to the pe rf ormance of accounting services in these proceedings . Those daily time records, however , do not reflect eve ry hour expended in ma tt ers such as telephone calls, routine correspondence , brief conferences and responses to requests for information concerning the status of these proceedings . Time devoted to such ma tt ers often eludes recording, but, if recorded , would undoubtedly add to the foregoing total . The accountants for the Receiver recorded the time expended on behalf of the Receiver accurately and there was no duplication of time . The hours expended accurately reflect the work pe rf ormed . 3 . Novelty and Difficulty of Services and Skills Requisite to the Accounting . The issues presented in this case are novel given the state of the Debtor ' s records , or lack of records , the difficulty of the records recove ry process, the unavailability of the debtor's accounting personnel , the lack of production of records by the debtor ' s third pa rt y financial services providers , outside accountants and auditors and the unique way the Debto r 5
Recommend
More recommend
